What was the upside to buying your last investment purchase?
Did you buy for capital gain in a rising market?
Did you buy for cashflow?
Some examples with figures would be good.
There are four parts to my answer (just to be different and a p.i.t.a)
1. Our last conscious IP purchase was a 2 x 1 unit in Frankston Central for $155k in 2004. To some this will be very surprising considering how much cr@p I come out with on this forum. "What; you haven't bought anything in the last 6 years??"
It was neg geared, but it was cheap and we bought it with the belief that Frangers will be a cap growth winner over the longer term. I wished I's spent a bit more and bought a house on a development block, but we were strapped at the time.
The upside has been the cap growth and the overall rentability of it.
2. We bought our current PPoR block from our neeighbor (and friend) in 2005 for $300k on a long settlement and small deposit. We know that the cap growth for blocks with views in Dromana will be excellent, because there are almost none left. Testament to that belief is the sale of the block next door for $450k this week. Upside is we have made $150k (50%) cap growth in 5 years. Downside is no income, but we knew this was part of that deal.
3. We bought a cafe/take-away and reception business in mid 2008 for cashflow. This is a fully managed business with 10 staff including manager. Bought for cashflow only. Upside; cashflow.
4. We bought the tyre and service centre business in August 2009 for cashflow. Has a staff of 3 including manager, and I work there as well. Upside; cashflow.